PEORIA, Ill. and MOUNT VERNON, Ohio, Dec. 5, 2012 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) and Ariel Corporation announced today the formation of a 50-50 joint venture that will provide well service pressure pumping products for customers in the global oil and gas industry. The combined venture, Black Horse LLC, also announced the acquisition of pump manufacturer ProSource of Houston, Texas.
Caterpillar is the world's leading manufacturer of diesel and natural gas engines for the generation, control and supply of mechanical and electric power for the marine and petroleum industries. Ariel Corporation is a global leader in the design and manufacture of gas compressors. More than 40,000 Ariel compressors are currently in use throughout the global energy industry to extract, process, transport, store and distribute natural gas from the wellhead to the end-user.
The acquisition of ProSource, which designs and manufactures reciprocating pressure pumps, enables Black Horse LLC to serve the well service market. Black Horse LLC will leverage Caterpillar and Ariel engineering and manufacturing expertise to expand ProSource's existing product line to better serve global oil and gas customers. Frac pumps sold through the combined venture will be branded and sold under the Cat name and distributed through the Cat dealer network.
"We are thrilled to partner with Ariel to bring our petroleum customers not just a partial solution, but a complete package," said Tom Frake, Caterpillar vice president with responsibility for Marine and Petroleum Power. "Together, with the support of our Cat dealer network, we can provide not only a complete pressure-pumping solution, but also the global parts and service support to maximize up-time throughout the world. This deal significantly improves our capability to meet our oil and gas customers' needs for reliable, sustainable power."
Under the arrangement, executives from Caterpillar's Marine and Petroleum Power Division and Ariel Corporation will jointly lead Black Horse LLC.
"Ariel has built an outstanding reputation by employing technology to provide high-quality, innovative products backed by world-class customer support. Caterpillar has done exactly the same," said Karen Buchwald Wright, Ariel's president and chief executive officer. "This partnership brings together two companies with the same strong values and commitment to customers' success. It's an exciting, new chapter for both of us."
The joint venture and integration of ProSource will result in important synergies, including leveraging the companies' existing product ranges, advanced technologies, research and development resources, and manufacturing, distribution and customer support capabilities.
Black Horse LLC is headquartered in Houston, Texas.
About Caterpillar: For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2011 sales and revenues of $60.138 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.
About Ariel: Established in 1966, and headquartered in Mount Vernon, OH, Ariel Corporation is the world's largest manufacturer of separable reciprocating gas compressors utilized by the global energy industry to extract, process, transport, store, and distribute natural gas from the wellhead to the end-user. Ariel also produces specialized API-618 reciprocating compressors for the process industry. As a world-class manufacturer, Ariel sets the industry standard through industry-leading research & development, expert design & manufacturing, and unmatched customer support. More information is available at: http://www.ArielCorp.com.
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Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets we serve; (ii) government monetary or fiscal policies and infrastructure spending; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) our and our customers', dealers' and suppliers' ability to access and manage liquidity; (v) political and economic risks and instability, including national or international conflicts and civil unrest; (vi) our and Cat Financial's ability to: maintain credit ratings, avoid material increases in borrowing costs, and access capital markets; (vii) the financial condition and credit worthiness of Cat Financial's customers; (viii) inability to realize expected benefits from acquisitions and divestitures, including the acquisition of Bucyrus International, Inc.; (ix) international trade and investment policies; (x) challenges related to Tier 4 emissions compliance; (xi) market acceptance of our products and services; (xii) changes in the competitive environment, including market share, pricing and geographic and product mix of sales; (xiii) successful implementation of capacity expansion projects, cost reduction initiatives and efficiency or productivity initiatives, including the Caterpillar Production System; (xiv) sourcing practices of our dealers or original equipment manufacturers; (xv) compliance with environmental laws and regulations; (xvi) alleged or actual violations of trade or anti-corruption laws and regulations; (xvii) additional tax expense or exposure; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial covenants; (xx) increased pension plan funding obligations; (xxi) union disputes or other employee relations issues; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) compliance requirements imposed if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards; (xxv) failure or breach of IT security; (xxvi) adverse effects of natural disasters; and (xxvii) other factors described in more detail under "Item 1A. Risk Factors" in our Form 10-K filed with the SEC on February 21, 2012 for the year ended December 31, 2011. This filing is available on our website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.